The
United States has minted coins in several denominations
since the inception of the US Mint in 1792. As other
countries did, coins were made of silver and gold for larger
denominations and copper for smaller denominations such as
the half cent and large cent coin. The reason for this was
simple; a silver cent would have been a very small coin.
Nickel as a composition would not be introduced until the
Shield Nickel in 1866. Early on, the silver coins had
different percentages of silver than what we know of today.
The half dime, which as the 5 cent coin of that period,
contained 89.24% silver. The first dimes, quarters, half
dollars and dollar coins of the time also contained 89.24%
silver.

This seemingly odd percentage of silver continued for these coins until 1837 for
dimes, 1838 for quarters, 1836 for half dollars and 1837 for silver dollar
coins. The change was mandated by The Law of January 18, 1837 to 412 1/2 grains
in weight and .900 fineness. From that point on, through 1964, dimes, quarters,
half dollars and dollar coins contained 90% silver. Twenty Cent Piece coins were
also made out of 90% silver. Also interesting to note is Three Cent coins were
first made out of a 75% silver alloy (1851 Ė 1853) and then conformed to the 90%
alloy beginning in 1854 through 1873. It should be noted that there were Three
Cent coins also issued from 1865 through 1889 that were a copper-nickel alloy.

There was not too much concern regarding the amount of silver in coins, as the
coins had more face value than silver and no matter what happened, would always
have a value of silver as well. In 1950, the price of silver was 75 cents per
ounce. It quickly shot up to around 90 cents per ounce, then back to 85 cents
an ounce and then gradually went back to 90 cents an ounce by the end of the
decade. In November 1961 the government suspended silver bullion sales by the
Treasury at the formerly fixed price of 91 cents. Once this happened, quotes
for silver began to rise and by 1963, silver reached $1.29 per ounce. At this
price a dime had 9 cents of silver value and a quarter had 23 cents silver value
and this was a growing concern in the government. Demand for silver for
manufacturing had risen during the last several years and showed no sign of
slowing down. As supply continued to dwindle, mostly because mining and
recovery of older silver could not keep up with demand, Washington debated over
silver's future role in coinage and settled on a copper-nickel composition for
dimes, quarters and a 40% silver alloy for half dollars.

In
1965 dimes and quarters were made out of a copper-nickel composition as the
price of silver was going up to the point that coins were worth more than face
value due to their bullion content. Half dollars from 1965 through 1969 were
made out of a 40% silver alloy and then in 1971, half dollars were made out of
the same material as dimes and quarters. Production of silver dollars had
ceased in 1935, expect for some experimental Peace Dollars made and destroyed in
1964.

This change obviously caused hoarding of silver coins. It is interesting to
note that coins dated 1964, and still made of silver were made well into 1965 to
keep up with demand. By 1968, silver was up over $2.00 per ounce which put the
silver value of a quarter at 36 cents. Most silver coins disappeared from
circulation very quickly.

So
then, what is considered Junk Silver? First, the term is an industry term and
does not really mean the coins are junk. It is just an industry term. Now, the
answer is not quite as easy as you might think, but it is not that hard either.
First, junk silver is usually considered to be coins that have no numismatic
value. They are usually silver coins where the price of silver has caused the
bullion value of the coin to exceed any numismatic, or collector value. To
illustrate this point, I will use an example of a common date Mercury Dime.
Letís say when silver was around $4.00 per ounce the bullion value of a common
1945 dime was 29 cents. The collector value might have been 35 cents for an
average coin. The value of a 1945 dime in AU condition might have been 90
cents. I do not have an old pricing magazine available so this is just an
illustration. Now imagine silver goes up to $10 per ounce. The common 1945
dime now has a bullion value of 72 cents. Here the bullion value has now
exceeded the numismatic value. The average 1945 dime still may have the same
demand from collectors, but since silver is now at $10, the value of the coin is
72 cents. Now image silver goes up to $15 per ounce. The silver/bullion value
of the dime is $1.09. This now exceeds the numismatic value of the average
condition dime as well as the AU dime. With silver around $40 per ounce, you
can see why most Mercury Dimes now have a bullion value exceeding numismatic
value.

In
this example, I used a very common 1945 dime. The same logic holds true for
coins with higher numismatic value. As silver continues to climb, $40 per ounce
as I write this, the bullion value of many coins has exceeded the bullion
value. So then, is there a general guideline of Junk Silver vs. Collectible
silver? In general terms yes. The chart below is my guidelines. Please note,
this will vary by dealer. Additionally, as silver continues to climb, more and
more coins that carry numismatic value today may be reduced to junk status
simply due to the increase in bullion value. This merely means the bullion
value has now exceeded the numismatic value.

Coin

Value

Any silver
coins before 1900

Usually, but
not always has numismatic value above bullion value unless in very worn
condition

Barber Dimes

In AG-G
condition, usually considered junk except for lower mintage coins

Mercury Dimes

Except for BU
coins, most are sold at junk value. Obviously there are expectations
for lower mintage coins such as 1916-D, etc.

Roosevelt
Dimes through 1964

All circulated
dimes are sold at junk/bullion value

Any Quarter
before Barber Quarters

Usually still
has numismatic value depending on condition

Barber
Quarters

Most AG coins
will sell around bullion value when silver is high. No clear-cut
direction for this series

Standing
Liberty Quarters

Any coin with
a date before 1925 carries numismatic value. AG-G-VG coins 1925-1930
will sell around bullion. Coins in better condition may vary

Washington
Quarters before 1965

Almost all
circulated Washington Quarters expect 1932-D and 1932-S are sold as junk

Generally
speaking, coins of the 1930ís and 1940ís in circulated condition are now
junk status (due in part of rising bullion prices).

Franklin
Halves

Most, if not
all circulated Franklin Halves sell as junk. Exceptions are
uncirculated coins

Kennedy Halves
before 1971

1964 Kennedy
halves, even UNC coins now seem to sell at junk status. Same for
1965-1969.

Silver Dollars

Most common
Peace and Morgan dollars in circulated condition sell for around bullion
value. Even most UNC 1921 Morgan Dollars do not carry much premium over
junk.

War Nickels
1942-1945

Nickels made
in 1942 through 1945 in circulated condition sell for junk silver
status. Please note, they are 35% silver. Also, not all 1942 nickels
are silver. BU coins have premium over junk status.

So
what should you do if you have silver coins dated before 1965? Take a look at
them and inventory them according to the chart above. Once done, I can provide
you with a quote to determine their worth. From there it is up to you.
Contact us for a Quote. If interested in
learning more about how to value coins, please see
What Makes a Coin Valuable?